Complexity: The Drivers for New Tax & Financial Professionals

If you need answers to complex questions your high net worth families are asking about their income and capital after personal, corporate, trust and cross-border taxation, or when new triggers are driving financial decisions your clients want to make, working with a Real Wealth Manager (RWM™) can help you answer and execute on them.  This is particularly so in today’s complex world when financial peace of mind – and answers to tough questions – both are more difficult to come by. 

Consider the risks:  political, economic, currency, privacy, security, as well as rising inflation and taxes in an increasingly digital world.    As a professional, where do you go when you don’t have all the answers?   A Real Wealth Manager is training to have broad and deep knowledge about all aspects of tax-efficient wealth management and to connect the strategy behind long term advice with multiple professional stakeholders as well as family members.

Two key people who are required to make it this all work:  The Real Wealth Manager and the Chief Family Influencer.  The CFI is the key financial influencer around a family stakeholder group – the highest income earner, possibly.  But it may also be the person who has the responsibility for the financial decision-making in the family; and that may not necessarily be the higher earner.

What matters is what you keep and how much that’s worth when you need it in the future.  Bear in mind that households make economic decisions as one unit, even though it is the individual that must file a tax return.  Managing tax risk is an ever-more present issue, as are the newly rising wealth eroders of inflation and costs like interest and fees. 

While we can’t do much about economic or political risk, or currency fluctuations or the housing market, there is much we can do to hedge the costs of taxes and inflation.  To begin it is everyone’s legal right and obligation to arrange their affairs within the framework of the law to pay the least taxes possible.  Tax specialists can help here, but they need expertise in a variety of disciplines – personal, corporate, trust, payroll and cross-border taxes are all complex and may require different levels of expertise. 

But investment advisors are as critical in the ultimate equation:  the accumulation, growth, preservation and transition of intact capital from one generation to the next.   

From a tax point of view there are many ways to proactively mitigate risk, but keeping on top of tax structure, tax deductions and deferrals, income splitting and transferrable provisions between multiple generations and the community, too.  To do this well requires broad and deep knowledge and tax strategies that are optimized when planning strategies are developed across the lifecycles of multiple people in the family.  Most family member have gaps in their tax strategies and investment opportunities.

Likewise, most family members work with and/or communicate with several different financial intermediaries to accumulate, grow, preserve and transition their wealth, but not necessarily in tandum.  There is great opportunity here for the Real Wealth Manager to wrap his or her arms around solutions for all of these stakeholders by bringing the right expertise to the table – accountants, lawyers, business valuators, insurance and pension specialists to name a few.

Most important, with so many stakeholders everyone needs to be on  the same page with the long term strategy for the family, especially when it comes to tax filing and planning.

That’s the purpose of Real Wealth Management, a framework and a discipline for getting the right results for tax efficient income and wealth building over time.

Now until December 15, professionals interested in taking their credentials up to the next level of holistic practice can register and save $200 on tuition!

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This includes a membership to the Society of Real Wealth Managers, a connected and collaborative network of like-minded and like-educated professionals serving their clients in a new holistic framework.